Capital Automotive Closes $102.4 Million Transaction with CarMax

    McLEAN, Va., Aug. 15 Capital Automotive REIT
, the nation's leading specialty finance company for automotive
retail real estate, announced today the acquisition of nine automotive retail
properties for approximately $102.4 million from CarMax , a
division of Circuit City Stores, Inc. .  This acquisition added
approximately 413,000 square feet of buildings and improvements on
approximately 116 acres of land in seven states (California, Florida,
Maryland, South Carolina, Tennessee, Texas and Virginia).  Eight used-car
superstores and five new-car franchises are operated on these nine properties
including Toyota, Mitsubishi and Nissan.  These properties have initial lease
terms of 15 years and have multiple renewal options.  The transaction was
funded with the net proceeds from Capital Automotive's underwritten public
equity offering that closed on August 8, 2001 and the remainder with long-term
debt from Toyota Financial Services.
    CarMax is the nation's leading specialty retailer of used cars.  With
headquarters in Richmond, Va., CarMax currently operates 40 retail units in 37
locations, including 33 used-car superstores and 20 new-car franchises, most
of which are integrated or co-located with its used-car superstores.  For more
information, access CarMax's Web site at CarMax.com .
    Thomas D. Eckert, President and Chief Executive Officer, stated, "This is
an outstanding acquisition and strategic partnership for Capital Automotive.
We continue to develop relationships with the leading auto retailers in the
country.  CarMax is one of the premier operators in the industry and has
demonstrated superior operating results supported by sound systems and
processes.  With CarMax's strong cash flow, solid balance sheet, and prudent
growth plans, we believe they are an ideal long-term partner for Capital
Automotive."
    Keith D. Browning, Executive Vice President and Chief Financial Officer of
CarMax, stated, "We are pleased to announce our new relationship with Capital
Automotive, which provides us with an attractive form of capital through
sale-leaseback transactions.  We believe this transaction is the start of a
great long-term alliance."
    Capital Automotive, headquartered in McLean, Va., is a self-administered,
self-managed real estate investment trust formed to acquire the real property
and improvements used by operators of multi-site, multi-franchised automotive
dealerships and related businesses.  Capital Automotive currently owns 259
properties with an asset value of approximately $1.2 billion, consisting of
379 franchises in 27 states.  Additional information on Capital Automotive is
available on the Company's Web site at http://www.capitalautomotive.com .

    To receive Capital Automotive's latest news and corporate developments
visit The Financial Relations Board's Web site at http://www.frbinc.com .

    Certain matters discussed within this press release are forward-looking
statements within the meaning of the federal securities laws. Although the
Company believes that the expectations reflected in the forward-looking
statements are based upon reasonable assumptions, the Company's future
operations will depend on a number of factors that may differ, some
materially, from the Company's assumptions. These factors, which could cause
the Company's actual results to differ materially from those set forth in the
forward-looking statements, include risks that our growth will be limited if
we cannot obtain additional capital; risks of financing, such as our ability
to consummate additional financings on terms which are acceptable to us and
our ability to meet existing financial covenants; risks that acquisitions may
not be consummated; risks that the Company's tenants will not pay rent or that
the Company's operating costs will be higher than expected; risks related to
the automotive industry, such as the ability of our tenants to compete
effectively in the automotive retail industry and the ability of our tenants
to perform their lease obligations as a result of changes in any
manufacturer's production, inventory, marketing or other practices;
environmental and other risks associated with the acquisition and leasing of
automotive properties; risks related to the Company's status as a REIT for
federal income tax purposes, such as the existence of complex regulations
relating to the Company's status as a REIT, the effect of future changes in
REIT requirements as a result of new legislation and the adverse consequences
of the failure to qualify as a REIT; and those risks detailed from time to
time in the Company's SEC reports, including its annual report on Form 10-K
and its quarterly reports on Form 10-Q. The Company makes no promise to update
any of the forward-looking statements, or to publicly release the results if
the Company revises any of them.

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